Decreasing Profit at Nestlé Hungária

Nestlé Hungária's profit fell to HUF 1.483 billion in the first half of the year from HUF 1.975 billion last year, according to a report published on the website of the Budapest Stock Exchange (BSE).

The food company's half-year sales increased from HUF 82.9 billion to HUF 103.9 billion, including foreign sales from HUF 17.2 billion to HUF 23.2 billion over the year. Exports to EU countries fell by 2%, while exports outside the EU and Europe rose by almost 80% to HUF 9.4 billion. Within total turnover, domestic sales of goods grew the most, by 27%, but services also increased by more than 10%.

Pet food accounted for more than HUF 53 billion of sales, with the division's annual growth of 38%, and is expected to remain strong in the second half of the year. Traditional Nestlé products achieved sales of HUF 45.3 billion, with the highest growth of over 10% in kitchen products and children's nutrition. Coffee, however, underperformed due to difficulties in raw material supply, they said.    

The company's targets for this year were unchanged, the report said. A rebound in tourism boosted revenues, but the war in Ukraine, energy prices and changes in exchange rates are seen as risks, according to the report.